Today the overriding news is Yellen's shift to a more dovish position and then we saw the markets lift quickly as that is exactly what the market wants to hear. This was a substantial move for one afternoon but what is critical is how much affect it had on the daily charts.
I posted two clusters of the key charts below with their midterm channels shown.
Looking at the second cluster, the IWM is still lagging. The Dow still has not breached its upper channel line. AAPL closed right at its neckline of its big head and shoulders it recently fell below. The XLF is in trouble as many are starting to short the banks in anticipation of their stock prices being hit if oil prices turn back down. The GLD and the TLT both have genuinely bullish setups with lots of room to move higher.
Trade well my friends
Alan
I posted two clusters of the key charts below with their midterm channels shown.
Looking at the cluster above, the S&P did not break through its downtrend line. The NASDAQ stopped right at its one-year support / resistance line. The QQQ, the leader of the day, did breakout of its declining channel but has yet to get through its corresponding one-year support / resistance level. The XLE (energy ETF) didn't get much help from the late afternoon short squeeze. The VIX and the VXX dropped some but they are still near their lower support lines.
Looking at the second cluster, the IWM is still lagging. The Dow still has not breached its upper channel line. AAPL closed right at its neckline of its big head and shoulders it recently fell below. The XLF is in trouble as many are starting to short the banks in anticipation of their stock prices being hit if oil prices turn back down. The GLD and the TLT both have genuinely bullish setups with lots of room to move higher.
Trade well my friends
Alan
